Chemtrade prices notes of $250M offering at 5.75%

Executive Summary

• Chemtrade Logistics Inc., a wholly-owned subsidiary of Chemtrade Logistics Income Fund, has priced a private placement of $250 million in senior unsecured notes due 2032.
• The notes carry a fixed interest rate of 5.750% per annum, payable semi-annually, and are guaranteed by the Fund and certain subsidiaries.
• Net proceeds will be used to repay indebtedness and for general corporate purposes, supporting the company's capital optimization strategy and balance sheet maturation.

Key Details

• Principal Amount: $250 million.
• Instrument: Senior unsecured notes due 2032.
• Pricing: Sold at $1,000 per $1,000 principal amount.
• Interest Rate: Fixed rate of 5.750% per annum.
• Payment Schedule: Semi-annual payments in arrears on April 1 and October 1, commencing April 1, 2026.
• Guarantee: Guaranteed by Chemtrade Logistics Income Fund and certain of its subsidiaries.
• Use of Proceeds: Repayment of indebtedness and general corporate purposes.
• Underwriters: Syndicate led by National Bank Capital Markets and BMO Capital Markets as joint bookrunners.
• Offering Structure: Private placement in Canada; may also be offered to qualified institutional buyers in the United States pursuant to Rule 144A.
• Expected Closing: On or about October 1, 2025, subject to customary closing conditions.

Notable Quotes

• "We recently announced a series of transactions to reduce our exposure to dilutive capital, including a redemption and substantial issuer bid for our outstanding 2027 convertible debentures and a substantial issuer bid for our outstanding 2028 convertible debentures. Those transactions are intended to minimize conversions that may dilute our unitholders," said Rohit Bhardwaj, Chemtrade's chief financial officer.
• "This offering is another step in furtherance of our capital optimization strategy and maturing our balance sheet by introducing long-tenor non-dilutive debt."